Last week was mixed for the averages. The S&P was down modestly, while the DWCPF tacked on more than a 2% gain, which is impressive given the selling at the end of the week.
Another bull flag in the making? I think that's likely, but we'll need to see if the 50 dma holds as support. Momentum has gone largely flat.
Breadth remains bullish, but it is under attack.
Last Thursday, NAAIM showed a significant increase in bullish positions among these smart money managers. I view this reading as bullish. TSP Talk came in neutral.
The end-of-month selling comes as we head into the historically weaker part of the year. There are plenty of negative headlines to stoke bearish sentiment too. So, why is NAAIM getting more bulled up? This is not a precision sentiment reading, but it tends to be accurate much more often than not.
Let's see how the new week starts. I've seen headlines that more selling is likely, but that's not the market talking. I remain bullish for now.